Employee’s {v’s) Freelancers

12 Mar

Freelancers/Employees

I get asked this question A LOT and for good reason, it’s a heavily debated subject and a complicated one but I have a very solid opinion that I stand by. To take on freelancers or not? Well, I think my first question to you would be 1. What is the overall goal for your business and 2. Why would you consider a freelancer over an employee? It’s a matter of jotting down the pro’s and cons of both options - I’m going to start you off with some of mine.

Pro’s of Freelancers

Not responsible for finding clientele
Lower expense (products, superannuation, wages, tax etc)
Freelancer is responsible for their own tax and super
No need to handle client bookings/correspondence
Can set a weekly/monthly retainer
Freelancers responsible for own booking system

Con’s of Freelancers

Will need to spend time managing/setting expectations for freelancers
Low earning ability for the salon
Creates a tricky work environment and atmosphere due to different structures
Inability to control level of work, type of client base
Freelancers tend to move on, taking clients with them (no security)

Pro’s of Employees

Can shape employees to reflect your brands ethics, standards and quality
Ability to earn much higher profit for salon
Attract a team that fits with your vision
A genuine love for the brand they work for
Higher morale (everyone on the same framework)
Much more predictable profit margins

Con’s of employees

Expensive to have
Will need strong leadership and guidelines
Must offer continual growth and development
Must offer juicy incentives to keep good staff
Management around bookings, sick leave, team struggles etc
You are liable for the quality of their performance

When starting up it can be so tempting to take on freelancers - in fact, when I started M.A.H 4 years ago, I myself wanted to take on freelancers as it’s a much easier set up process and gives you a little dough in your pocket without a lot of leg work. BUT, and it’s a big but… my overall vision, my end goal stopped me from doing so. Why? Well, I think that while having freelancers in the beginning can be much easier, they create a big problem later on as you scale.

Freelancers will NOT I repeat, WILL NOT allow you to scale your brand as quickly as what having employees will and if they do, I would argue the growth will not be sustainable. Why? Well the reason is, you have absolutely no security with freelancer and rent a chair agreements. You’ll also find it difficult to flesh out your biz dreams with too many cooks in the kitchen. For me, I wanted to harvest a community and build a team that I could shape into phenomenal hairdressers AND I wanted them to get invested in my business. Sure, employees are not easy. I’ve got the dreamiest team of all time and still it takes constant work. You’ve gotta give them somewhere to grow and you have to guide them along the way. However, in the way that freelancers mean (technically) less managing, can also mean they need the most managing. The hardest bit, it’s really difficult to if they’re not technically an employee.

The beauty of employees - Firstly, it’s entirely legal and there are FAR LESS grey areas. When you employ someone, you do so with a work agreement in place. You can easily outline the expectations you have surrounded their role and performance. You pay them an hourly rate, so in their downtime - they must be productive for you.

There is certainly a time and point where I’d consider freelancers but I have a few rules with this and I’ll be sharing those soon. In the meantime, I’m going to focus on what I think is going to give you growth.

I believe the key to a successful salon and a happy team is frequent check ins, team building days, education and regular review sessions. Luckily for you, I’m giving you access to all of our team management frameworks - they’re trialled, tested and they work.

In short this is what we’ll be uncovering -

Step 1. Your Energy - Let’s take a deep dive into your brand in order to understand why people might want to work with you? What are you doing in the industry that is exciting and something to be a part of? Does the outside world know what it looks like to work for you? Does your vibe and ethos come across on your socials and website?

Step 2. Finding your dream team - So you’ve got a brand that people are excited to be a part of, what’s next? I’m a big believer in hiring off energy rather than experience (dw you’ll receive a pdf on that soon) Scaling with apprentices is my first recommendation - beef up your days with the use of an apprentice. Get them on the floor and repeat. Alternatively, should you find a stellar senior that loves your brand - we’ve got a guide for onboarding there too.

Step 4. Outlining the role, setting expectations, educating and facilitating growth. It’s time to lay down the law (in a nice way) and set your staff up for success. Watch my quick video on this here to get some great ideas!

Step 5. Learning what drives your team - So you’re now 2,3, or 4 (or more) staff members deep. Let’s get to know them. Weekly catch ups and quarterly reviews are a MUST for driving and mentoring your team. I have my team leader catch up with our team individually every week to go through their goals, KPI’s and anything else they want to address. It means we are listening and taking action, ALWAYS. It’s also so important to be flexible, approachable and results driven with your team. Show them you follow through with what you say and show up for them.

Step 6. Nailing 1 on 1’s and reviews is PARAMOUNT - and we’ll have a template coming soon, so keep an eye on our shop for updates. Not the biggest fan of reviews? Oh honey, I was once there! With practice is DOES get easier but they shouldn’t be seen as something icky. Weekly catchups and daily huddles with your team WILL MEAN THAT SH*T ISN’T ALL LEFT FOR REVIEWS. Tackle things daily and monthly, keep Individual Weekly Health Checks (they’re coming too soon ;) and face problem areas as soon as you notice them. Make reviews fun, uplifting, transformative.

Step 7. Team meetings & huddles YEAH YEAH YEAH! They’ll change your biz. Keep a meeting template (YEP, you’ll be able to get your mitts on ours soon) and have quick, 15 minute power chats every morning to highten the VIBE!

Step 8. They’re smashing it - where to now? Frequent check-ins with your team will mean that usually you’ll know where they’re at. It will no doubt, get to a point where they want a change. Scary? Of course, you LOVE them but change doesn’t have to hurt so bad. When one of my most popular stylists left to have a baby, I made her a big part of our education team. She’s still such a big part of PR, even though she’s not snipping hair in salon anymore! Embrace the journey and give your team options.

Step 9. Salon guides, systems and managers are gonna set you FREE. It takes time to develop strong systems and strong leaders but what’s important here is that you’ve just gotta start. As CEO, you’ve got sh*t to do, so hire well and build them up to be great. Scared a manager will leave once they’re there? Give them something to stay for. Maybe it’s a partnership in the business? Again, be open to options.

Step 10. From salon mom to CEO - but you’re always gonna be “salon mom” My Journey has been wild, filled with ups and downs and SO rewarding. Becoming a business owner and leader has forced me to STEP UP in every area of my life and I am so damn grateful for it. Being boss means you’ve gotta walk the walk and talk the talk. It’s time to become the very best version of you. Follow my insta for tricks and snippets into my life and routine. I share all of my secrets.